Antioch Company makes eBook readers. The company had the following amounts at the beginning of 2018:...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Antioch Company makes eBook readers. The company had the following amounts at the beginning of 2018: Cash, $677,000; Raw Materials Inventory, $65,000; Work in Process Inventory, $33,000; Finished Goods Inventory, $45,000%3; Common Stock, $588,000; and Retained Earnings, $232,000. Antioch experienced the following accounting events during 2018. Other than the adjusting entries for depreciation, assume that all transactions are cash transactions. 1. Paid $29,000 of research and development costs. 2. Paid $57,000 for raw materials that will be used to make eBook readers. 3. Placed $92,000 of the raw materials cost into the process of manufacturing eBook readers. 4. Paid $67,000 for salaries of selling and administrative employees. 5. Paid $91,000 for wages of production workers. 6. Paid $159,000 to purchase equipment used in selling and administrative offices. 7. Recognized depreciation on the office equipment. The equipment was acquired on January 1, 2018. It has a $19,000 salvage value and a seven-year life. The amount of depreciation is computed as [(Cost – salvage) useful life]. Specifically, ($159,000 $19,000) 7= $20,000. 8. Paid $163,000 to purchase manufacturing equipment. 9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1, 2018. It has a $30,000 salvage value and a seven-year life. The amount of depreciation is computed as [(Cost – salvage) useful life]. Specifically, ($163,000 - $30,000) 7 = $19,000. 10. Paid $49,000 for rent and utility costs on the manufacturing facility. 11. Paid $75,000 for inventory holding expenses for completed eBook readers (rental of warehouse space, salaries of warehouse personnel, and other general storage cost). 12. Completed and transferred eBook readers that had total cost of $248,000 from work in process inventory to finished goods. 13. Sold 960 eBook readers for $435,000. 14. It cost Antioch $153,600 to make the eBook readers sold in Event 13. Required a. Show how these events affect the balance sheet, income statement, and statement of cash flows by recording them in a horizontal financial statements model. (Enter any decreases to account balances and cash outflows with a minus sign. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), financing activity (FA), or NA for not affected.) ANTIOCH COMPANY Financial Statements Model Assets Stockholders' Equity Income Statement Event Raw Materials Work in Process Inventory Finished Goods Manufacturing Equipment Retained Earnings Office Common Stock No. Cash Revenue Expense = Net Income Furniture 677,000 + 65,000 + 33,000 + 45,000 + 588.000 + 232,000 1. + + 2. + + 3. +. 4. + %3D 5. + + + + %3D 6. + %3D 7. +1 + + %3D + %3D 8. + 9. + 10. + +. + 11. + %3D 12. + + + + %3D 13. + %3D %3D 14. Total 677,000 + 65,000 + 33,000 + 45,000 + 0 + 0 = 588,000 + 232,000 at Statement of Cash Flow E Net Income Antioch Company makes eBook readers. The company had the following amounts at the beginning of 2018: Cash, $677,000; Raw Materials Inventory, $65,000; Work in Process Inventory, $33,000; Finished Goods Inventory, $45,000%3; Common Stock, $588,000; and Retained Earnings, $232,000. Antioch experienced the following accounting events during 2018. Other than the adjusting entries for depreciation, assume that all transactions are cash transactions. 1. Paid $29,000 of research and development costs. 2. Paid $57,000 for raw materials that will be used to make eBook readers. 3. Placed $92,000 of the raw materials cost into the process of manufacturing eBook readers. 4. Paid $67,000 for salaries of selling and administrative employees. 5. Paid $91,000 for wages of production workers. 6. Paid $159,000 to purchase equipment used in selling and administrative offices. 7. Recognized depreciation on the office equipment. The equipment was acquired on January 1, 2018. It has a $19,000 salvage value and a seven-year life. The amount of depreciation is computed as [(Cost – salvage) useful life]. Specifically, ($159,000 $19,000) 7= $20,000. 8. Paid $163,000 to purchase manufacturing equipment. 9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1, 2018. It has a $30,000 salvage value and a seven-year life. The amount of depreciation is computed as [(Cost – salvage) useful life]. Specifically, ($163,000 - $30,000) 7 = $19,000. 10. Paid $49,000 for rent and utility costs on the manufacturing facility. 11. Paid $75,000 for inventory holding expenses for completed eBook readers (rental of warehouse space, salaries of warehouse personnel, and other general storage cost). 12. Completed and transferred eBook readers that had total cost of $248,000 from work in process inventory to finished goods. 13. Sold 960 eBook readers for $435,000. 14. It cost Antioch $153,600 to make the eBook readers sold in Event 13. Required a. Show how these events affect the balance sheet, income statement, and statement of cash flows by recording them in a horizontal financial statements model. (Enter any decreases to account balances and cash outflows with a minus sign. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), financing activity (FA), or NA for not affected.) ANTIOCH COMPANY Financial Statements Model Assets Stockholders' Equity Income Statement Event Raw Materials Work in Process Inventory Finished Goods Manufacturing Equipment Retained Earnings Office Common Stock No. Cash Revenue Expense = Net Income Furniture 677,000 + 65,000 + 33,000 + 45,000 + 588.000 + 232,000 1. + + 2. + + 3. +. 4. + %3D 5. + + + + %3D 6. + %3D 7. +1 + + %3D + %3D 8. + 9. + 10. + +. + 11. + %3D 12. + + + + %3D 13. + %3D %3D 14. Total 677,000 + 65,000 + 33,000 + 45,000 + 0 + 0 = 588,000 + 232,000 at Statement of Cash Flow E Net Income Antioch Company makes eBook readers. The company had the following amounts at the beginning of 2018: Cash, $677,000; Raw Materials Inventory, $65,000; Work in Process Inventory, $33,000; Finished Goods Inventory, $45,000%3; Common Stock, $588,000; and Retained Earnings, $232,000. Antioch experienced the following accounting events during 2018. Other than the adjusting entries for depreciation, assume that all transactions are cash transactions. 1. Paid $29,000 of research and development costs. 2. Paid $57,000 for raw materials that will be used to make eBook readers. 3. Placed $92,000 of the raw materials cost into the process of manufacturing eBook readers. 4. Paid $67,000 for salaries of selling and administrative employees. 5. Paid $91,000 for wages of production workers. 6. Paid $159,000 to purchase equipment used in selling and administrative offices. 7. Recognized depreciation on the office equipment. The equipment was acquired on January 1, 2018. It has a $19,000 salvage value and a seven-year life. The amount of depreciation is computed as [(Cost – salvage) useful life]. Specifically, ($159,000 $19,000) 7= $20,000. 8. Paid $163,000 to purchase manufacturing equipment. 9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1, 2018. It has a $30,000 salvage value and a seven-year life. The amount of depreciation is computed as [(Cost – salvage) useful life]. Specifically, ($163,000 - $30,000) 7 = $19,000. 10. Paid $49,000 for rent and utility costs on the manufacturing facility. 11. Paid $75,000 for inventory holding expenses for completed eBook readers (rental of warehouse space, salaries of warehouse personnel, and other general storage cost). 12. Completed and transferred eBook readers that had total cost of $248,000 from work in process inventory to finished goods. 13. Sold 960 eBook readers for $435,000. 14. It cost Antioch $153,600 to make the eBook readers sold in Event 13. Required a. Show how these events affect the balance sheet, income statement, and statement of cash flows by recording them in a horizontal financial statements model. (Enter any decreases to account balances and cash outflows with a minus sign. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), financing activity (FA), or NA for not affected.) ANTIOCH COMPANY Financial Statements Model Assets Stockholders' Equity Income Statement Event Raw Materials Work in Process Inventory Finished Goods Manufacturing Equipment Retained Earnings Office Common Stock No. Cash Revenue Expense = Net Income Furniture 677,000 + 65,000 + 33,000 + 45,000 + 588.000 + 232,000 1. + + 2. + + 3. +. 4. + %3D 5. + + + + %3D 6. + %3D 7. +1 + + %3D + %3D 8. + 9. + 10. + +. + 11. + %3D 12. + + + + %3D 13. + %3D %3D 14. Total 677,000 + 65,000 + 33,000 + 45,000 + 0 + 0 = 588,000 + 232,000 at Statement of Cash Flow E Net Income Antioch Company makes eBook readers. The company had the following amounts at the beginning of 2018: Cash, $677,000; Raw Materials Inventory, $65,000; Work in Process Inventory, $33,000; Finished Goods Inventory, $45,000%3; Common Stock, $588,000; and Retained Earnings, $232,000. Antioch experienced the following accounting events during 2018. Other than the adjusting entries for depreciation, assume that all transactions are cash transactions. 1. Paid $29,000 of research and development costs. 2. Paid $57,000 for raw materials that will be used to make eBook readers. 3. Placed $92,000 of the raw materials cost into the process of manufacturing eBook readers. 4. Paid $67,000 for salaries of selling and administrative employees. 5. Paid $91,000 for wages of production workers. 6. Paid $159,000 to purchase equipment used in selling and administrative offices. 7. Recognized depreciation on the office equipment. The equipment was acquired on January 1, 2018. It has a $19,000 salvage value and a seven-year life. The amount of depreciation is computed as [(Cost – salvage) useful life]. Specifically, ($159,000 $19,000) 7= $20,000. 8. Paid $163,000 to purchase manufacturing equipment. 9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1, 2018. It has a $30,000 salvage value and a seven-year life. The amount of depreciation is computed as [(Cost – salvage) useful life]. Specifically, ($163,000 - $30,000) 7 = $19,000. 10. Paid $49,000 for rent and utility costs on the manufacturing facility. 11. Paid $75,000 for inventory holding expenses for completed eBook readers (rental of warehouse space, salaries of warehouse personnel, and other general storage cost). 12. Completed and transferred eBook readers that had total cost of $248,000 from work in process inventory to finished goods. 13. Sold 960 eBook readers for $435,000. 14. It cost Antioch $153,600 to make the eBook readers sold in Event 13. Required a. Show how these events affect the balance sheet, income statement, and statement of cash flows by recording them in a horizontal financial statements model. (Enter any decreases to account balances and cash outflows with a minus sign. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), financing activity (FA), or NA for not affected.) ANTIOCH COMPANY Financial Statements Model Assets Stockholders' Equity Income Statement Event Raw Materials Work in Process Inventory Finished Goods Manufacturing Equipment Retained Earnings Office Common Stock No. Cash Revenue Expense = Net Income Furniture 677,000 + 65,000 + 33,000 + 45,000 + 588.000 + 232,000 1. + + 2. + + 3. +. 4. + %3D 5. + + + + %3D 6. + %3D 7. +1 + + %3D + %3D 8. + 9. + 10. + +. + 11. + %3D 12. + + + + %3D 13. + %3D %3D 14. Total 677,000 + 65,000 + 33,000 + 45,000 + 0 + 0 = 588,000 + 232,000 at Statement of Cash Flow E Net Income Antioch Company makes eBook readers. The company had the following amounts at the beginning of 2018: Cash, $677,000; Raw Materials Inventory, $65,000; Work in Process Inventory, $33,000; Finished Goods Inventory, $45,000%3; Common Stock, $588,000; and Retained Earnings, $232,000. Antioch experienced the following accounting events during 2018. Other than the adjusting entries for depreciation, assume that all transactions are cash transactions. 1. Paid $29,000 of research and development costs. 2. Paid $57,000 for raw materials that will be used to make eBook readers. 3. Placed $92,000 of the raw materials cost into the process of manufacturing eBook readers. 4. Paid $67,000 for salaries of selling and administrative employees. 5. Paid $91,000 for wages of production workers. 6. Paid $159,000 to purchase equipment used in selling and administrative offices. 7. Recognized depreciation on the office equipment. The equipment was acquired on January 1, 2018. It has a $19,000 salvage value and a seven-year life. The amount of depreciation is computed as [(Cost – salvage) useful life]. Specifically, ($159,000 $19,000) 7= $20,000. 8. Paid $163,000 to purchase manufacturing equipment. 9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1, 2018. It has a $30,000 salvage value and a seven-year life. The amount of depreciation is computed as [(Cost – salvage) useful life]. Specifically, ($163,000 - $30,000) 7 = $19,000. 10. Paid $49,000 for rent and utility costs on the manufacturing facility. 11. Paid $75,000 for inventory holding expenses for completed eBook readers (rental of warehouse space, salaries of warehouse personnel, and other general storage cost). 12. Completed and transferred eBook readers that had total cost of $248,000 from work in process inventory to finished goods. 13. Sold 960 eBook readers for $435,000. 14. It cost Antioch $153,600 to make the eBook readers sold in Event 13. Required a. Show how these events affect the balance sheet, income statement, and statement of cash flows by recording them in a horizontal financial statements model. (Enter any decreases to account balances and cash outflows with a minus sign. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), financing activity (FA), or NA for not affected.) ANTIOCH COMPANY Financial Statements Model Assets Stockholders' Equity Income Statement Event Raw Materials Work in Process Inventory Finished Goods Manufacturing Equipment Retained Earnings Office Common Stock No. Cash Revenue Expense = Net Income Furniture 677,000 + 65,000 + 33,000 + 45,000 + 588.000 + 232,000 1. + + 2. + + 3. +. 4. + %3D 5. + + + + %3D 6. + %3D 7. +1 + + %3D + %3D 8. + 9. + 10. + +. + 11. + %3D 12. + + + + %3D 13. + %3D %3D 14. Total 677,000 + 65,000 + 33,000 + 45,000 + 0 + 0 = 588,000 + 232,000 at Statement of Cash Flow E Net Income Antioch Company makes eBook readers. The company had the following amounts at the beginning of 2018: Cash, $677,000; Raw Materials Inventory, $65,000; Work in Process Inventory, $33,000; Finished Goods Inventory, $45,000%3; Common Stock, $588,000; and Retained Earnings, $232,000. Antioch experienced the following accounting events during 2018. Other than the adjusting entries for depreciation, assume that all transactions are cash transactions. 1. Paid $29,000 of research and development costs. 2. Paid $57,000 for raw materials that will be used to make eBook readers. 3. Placed $92,000 of the raw materials cost into the process of manufacturing eBook readers. 4. Paid $67,000 for salaries of selling and administrative employees. 5. Paid $91,000 for wages of production workers. 6. Paid $159,000 to purchase equipment used in selling and administrative offices. 7. Recognized depreciation on the office equipment. The equipment was acquired on January 1, 2018. It has a $19,000 salvage value and a seven-year life. The amount of depreciation is computed as [(Cost – salvage) useful life]. Specifically, ($159,000 $19,000) 7= $20,000. 8. Paid $163,000 to purchase manufacturing equipment. 9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1, 2018. It has a $30,000 salvage value and a seven-year life. The amount of depreciation is computed as [(Cost – salvage) useful life]. Specifically, ($163,000 - $30,000) 7 = $19,000. 10. Paid $49,000 for rent and utility costs on the manufacturing facility. 11. Paid $75,000 for inventory holding expenses for completed eBook readers (rental of warehouse space, salaries of warehouse personnel, and other general storage cost). 12. Completed and transferred eBook readers that had total cost of $248,000 from work in process inventory to finished goods. 13. Sold 960 eBook readers for $435,000. 14. It cost Antioch $153,600 to make the eBook readers sold in Event 13. Required a. Show how these events affect the balance sheet, income statement, and statement of cash flows by recording them in a horizontal financial statements model. (Enter any decreases to account balances and cash outflows with a minus sign. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), financing activity (FA), or NA for not affected.) ANTIOCH COMPANY Financial Statements Model Assets Stockholders' Equity Income Statement Event Raw Materials Work in Process Inventory Finished Goods Manufacturing Equipment Retained Earnings Office Common Stock No. Cash Revenue Expense = Net Income Furniture 677,000 + 65,000 + 33,000 + 45,000 + 588.000 + 232,000 1. + + 2. + + 3. +. 4. + %3D 5. + + + + %3D 6. + %3D 7. +1 + + %3D + %3D 8. + 9. + 10. + +. + 11. + %3D 12. + + + + %3D 13. + %3D %3D 14. Total 677,000 + 65,000 + 33,000 + 45,000 + 0 + 0 = 588,000 + 232,000 at Statement of Cash Flow E Net Income Antioch Company makes eBook readers. The company had the following amounts at the beginning of 2018: Cash, $677,000; Raw Materials Inventory, $65,000; Work in Process Inventory, $33,000; Finished Goods Inventory, $45,000%3; Common Stock, $588,000; and Retained Earnings, $232,000. Antioch experienced the following accounting events during 2018. Other than the adjusting entries for depreciation, assume that all transactions are cash transactions. 1. Paid $29,000 of research and development costs. 2. Paid $57,000 for raw materials that will be used to make eBook readers. 3. Placed $92,000 of the raw materials cost into the process of manufacturing eBook readers. 4. Paid $67,000 for salaries of selling and administrative employees. 5. Paid $91,000 for wages of production workers. 6. Paid $159,000 to purchase equipment used in selling and administrative offices. 7. Recognized depreciation on the office equipment. The equipment was acquired on January 1, 2018. It has a $19,000 salvage value and a seven-year life. The amount of depreciation is computed as [(Cost – salvage) useful life]. Specifically, ($159,000 $19,000) 7= $20,000. 8. Paid $163,000 to purchase manufacturing equipment. 9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1, 2018. It has a $30,000 salvage value and a seven-year life. The amount of depreciation is computed as [(Cost – salvage) useful life]. Specifically, ($163,000 - $30,000) 7 = $19,000. 10. Paid $49,000 for rent and utility costs on the manufacturing facility. 11. Paid $75,000 for inventory holding expenses for completed eBook readers (rental of warehouse space, salaries of warehouse personnel, and other general storage cost). 12. Completed and transferred eBook readers that had total cost of $248,000 from work in process inventory to finished goods. 13. Sold 960 eBook readers for $435,000. 14. It cost Antioch $153,600 to make the eBook readers sold in Event 13. Required a. Show how these events affect the balance sheet, income statement, and statement of cash flows by recording them in a horizontal financial statements model. (Enter any decreases to account balances and cash outflows with a minus sign. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), financing activity (FA), or NA for not affected.) ANTIOCH COMPANY Financial Statements Model Assets Stockholders' Equity Income Statement Event Raw Materials Work in Process Inventory Finished Goods Manufacturing Equipment Retained Earnings Office Common Stock No. Cash Revenue Expense = Net Income Furniture 677,000 + 65,000 + 33,000 + 45,000 + 588.000 + 232,000 1. + + 2. + + 3. +. 4. + %3D 5. + + + + %3D 6. + %3D 7. +1 + + %3D + %3D 8. + 9. + 10. + +. + 11. + %3D 12. + + + + %3D 13. + %3D %3D 14. Total 677,000 + 65,000 + 33,000 + 45,000 + 0 + 0 = 588,000 + 232,000 at Statement of Cash Flow E Net Income Antioch Company makes eBook readers. The company had the following amounts at the beginning of 2018: Cash, $677,000; Raw Materials Inventory, $65,000; Work in Process Inventory, $33,000; Finished Goods Inventory, $45,000%3; Common Stock, $588,000; and Retained Earnings, $232,000. Antioch experienced the following accounting events during 2018. Other than the adjusting entries for depreciation, assume that all transactions are cash transactions. 1. Paid $29,000 of research and development costs. 2. Paid $57,000 for raw materials that will be used to make eBook readers. 3. Placed $92,000 of the raw materials cost into the process of manufacturing eBook readers. 4. Paid $67,000 for salaries of selling and administrative employees. 5. Paid $91,000 for wages of production workers. 6. Paid $159,000 to purchase equipment used in selling and administrative offices. 7. Recognized depreciation on the office equipment. The equipment was acquired on January 1, 2018. It has a $19,000 salvage value and a seven-year life. The amount of depreciation is computed as [(Cost – salvage) useful life]. Specifically, ($159,000 $19,000) 7= $20,000. 8. Paid $163,000 to purchase manufacturing equipment. 9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1, 2018. It has a $30,000 salvage value and a seven-year life. The amount of depreciation is computed as [(Cost – salvage) useful life]. Specifically, ($163,000 - $30,000) 7 = $19,000. 10. Paid $49,000 for rent and utility costs on the manufacturing facility. 11. Paid $75,000 for inventory holding expenses for completed eBook readers (rental of warehouse space, salaries of warehouse personnel, and other general storage cost). 12. Completed and transferred eBook readers that had total cost of $248,000 from work in process inventory to finished goods. 13. Sold 960 eBook readers for $435,000. 14. It cost Antioch $153,600 to make the eBook readers sold in Event 13. Required a. Show how these events affect the balance sheet, income statement, and statement of cash flows by recording them in a horizontal financial statements model. (Enter any decreases to account balances and cash outflows with a minus sign. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), financing activity (FA), or NA for not affected.) ANTIOCH COMPANY Financial Statements Model Assets Stockholders' Equity Income Statement Event Raw Materials Work in Process Inventory Finished Goods Manufacturing Equipment Retained Earnings Office Common Stock No. Cash Revenue Expense = Net Income Furniture 677,000 + 65,000 + 33,000 + 45,000 + 588.000 + 232,000 1. + + 2. + + 3. +. 4. + %3D 5. + + + + %3D 6. + %3D 7. +1 + + %3D + %3D 8. + 9. + 10. + +. + 11. + %3D 12. + + + + %3D 13. + %3D %3D 14. Total 677,000 + 65,000 + 33,000 + 45,000 + 0 + 0 = 588,000 + 232,000 at Statement of Cash Flow E Net Income Antioch Company makes eBook readers. The company had the following amounts at the beginning of 2018: Cash, $677,000; Raw Materials Inventory, $65,000; Work in Process Inventory, $33,000; Finished Goods Inventory, $45,000%3; Common Stock, $588,000; and Retained Earnings, $232,000. Antioch experienced the following accounting events during 2018. Other than the adjusting entries for depreciation, assume that all transactions are cash transactions. 1. Paid $29,000 of research and development costs. 2. Paid $57,000 for raw materials that will be used to make eBook readers. 3. Placed $92,000 of the raw materials cost into the process of manufacturing eBook readers. 4. Paid $67,000 for salaries of selling and administrative employees. 5. Paid $91,000 for wages of production workers. 6. Paid $159,000 to purchase equipment used in selling and administrative offices. 7. Recognized depreciation on the office equipment. The equipment was acquired on January 1, 2018. It has a $19,000 salvage value and a seven-year life. The amount of depreciation is computed as [(Cost – salvage) useful life]. Specifically, ($159,000 $19,000) 7= $20,000. 8. Paid $163,000 to purchase manufacturing equipment. 9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1, 2018. It has a $30,000 salvage value and a seven-year life. The amount of depreciation is computed as [(Cost – salvage) useful life]. Specifically, ($163,000 - $30,000) 7 = $19,000. 10. Paid $49,000 for rent and utility costs on the manufacturing facility. 11. Paid $75,000 for inventory holding expenses for completed eBook readers (rental of warehouse space, salaries of warehouse personnel, and other general storage cost). 12. Completed and transferred eBook readers that had total cost of $248,000 from work in process inventory to finished goods. 13. Sold 960 eBook readers for $435,000. 14. It cost Antioch $153,600 to make the eBook readers sold in Event 13. Required a. Show how these events affect the balance sheet, income statement, and statement of cash flows by recording them in a horizontal financial statements model. (Enter any decreases to account balances and cash outflows with a minus sign. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), financing activity (FA), or NA for not affected.) ANTIOCH COMPANY Financial Statements Model Assets Stockholders' Equity Income Statement Event Raw Materials Work in Process Inventory Finished Goods Manufacturing Equipment Retained Earnings Office Common Stock No. Cash Revenue Expense = Net Income Furniture 677,000 + 65,000 + 33,000 + 45,000 + 588.000 + 232,000 1. + + 2. + + 3. +. 4. + %3D 5. + + + + %3D 6. + %3D 7. +1 + + %3D + %3D 8. + 9. + 10. + +. + 11. + %3D 12. + + + + %3D 13. + %3D %3D 14. Total 677,000 + 65,000 + 33,000 + 45,000 + 0 + 0 = 588,000 + 232,000 at Statement of Cash Flow E Net Income Antioch Company makes eBook readers. The company had the following amounts at the beginning of 2018: Cash, $677,000; Raw Materials Inventory, $65,000; Work in Process Inventory, $33,000; Finished Goods Inventory, $45,000%3; Common Stock, $588,000; and Retained Earnings, $232,000. Antioch experienced the following accounting events during 2018. Other than the adjusting entries for depreciation, assume that all transactions are cash transactions. 1. Paid $29,000 of research and development costs. 2. Paid $57,000 for raw materials that will be used to make eBook readers. 3. Placed $92,000 of the raw materials cost into the process of manufacturing eBook readers. 4. Paid $67,000 for salaries of selling and administrative employees. 5. Paid $91,000 for wages of production workers. 6. Paid $159,000 to purchase equipment used in selling and administrative offices. 7. Recognized depreciation on the office equipment. The equipment was acquired on January 1, 2018. It has a $19,000 salvage value and a seven-year life. The amount of depreciation is computed as [(Cost – salvage) useful life]. Specifically, ($159,000 $19,000) 7= $20,000. 8. Paid $163,000 to purchase manufacturing equipment. 9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1, 2018. It has a $30,000 salvage value and a seven-year life. The amount of depreciation is computed as [(Cost – salvage) useful life]. Specifically, ($163,000 - $30,000) 7 = $19,000. 10. Paid $49,000 for rent and utility costs on the manufacturing facility. 11. Paid $75,000 for inventory holding expenses for completed eBook readers (rental of warehouse space, salaries of warehouse personnel, and other general storage cost). 12. Completed and transferred eBook readers that had total cost of $248,000 from work in process inventory to finished goods. 13. Sold 960 eBook readers for $435,000. 14. It cost Antioch $153,600 to make the eBook readers sold in Event 13. Required a. Show how these events affect the balance sheet, income statement, and statement of cash flows by recording them in a horizontal financial statements model. (Enter any decreases to account balances and cash outflows with a minus sign. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), financing activity (FA), or NA for not affected.) ANTIOCH COMPANY Financial Statements Model Assets Stockholders' Equity Income Statement Event Raw Materials Work in Process Inventory Finished Goods Manufacturing Equipment Retained Earnings Office Common Stock No. Cash Revenue Expense = Net Income Furniture 677,000 + 65,000 + 33,000 + 45,000 + 588.000 + 232,000 1. + + 2. + + 3. +. 4. + %3D 5. + + + + %3D 6. + %3D 7. +1 + + %3D + %3D 8. + 9. + 10. + +. + 11. + %3D 12. + + + + %3D 13. + %3D %3D 14. Total 677,000 + 65,000 + 33,000 + 45,000 + 0 + 0 = 588,000 + 232,000 at Statement of Cash Flow E Net Income
Expert Answer:
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078110894
6th Edition
Authors: Edmonds, Tsay, olds
Posted Date:
Students also viewed these accounting questions
-
The financial statement column should be identified as Balance Sheet Income Statement or Retained Earnings The classification column should be identified as current liabilities noncurrent liabilities...
-
The income statement and statement of cash flows for ABC Equipment Company for 20X1 are provided below. ABC Equipment Company Income Statement for the Year Ended December 31, 20X1 ($ in millions)...
-
The following horizontal financial statements model shows the effects of recording the expiration of insurance in two different circumstances. One circumstance represents the expiration of insurance...
-
A 1200-kg car has a maximum power output of 120hp. How steep a hill can it climb at a constant speed of 75km/h if the frictional forces add up to 650 N?
-
The data below are annual total returns for General Foods (GF) and Sigma Technology (ST) for the period 1997-2011. Sigma Technology is highly regarded by many investors for its innovative products....
-
Choose any newspaper or business magazines and search for an article(s) or commentary that refers to risky, uncertain, or volatile environments. Interpret the article from the point of view of an...
-
Under what conditions would an auditor choose a nonstatistical sampling plan in substantive tests of details?
-
The current sections of Scoggin Inc.s balance sheets at December 31, 2013 and 2014 are presented here. Scoggins net income for 2014 was $153,000. Depreciation expense was $24,000. Instructions...
-
The following standards have been established for a raw material used to make product 084: Standard quantity of the material per unit of output Standard price of the material The following data...
-
Create a program that will scrape the sayings from: https://quotes.toscrape.com/page/2/ Set up your program to allow the user to input a page number (1-10) which will return the quotes from that...
-
1. Give the computational complexity of the following piece of code in Big-Oh notation and explain how you arrived at your result: for(i=1;i
-
What two factors most affect how much people need to save to achieve their financial goals?
-
Describe the "sunk cost effect" and why this is considered a financial bias.
-
What is the primary difference between an annuityand a compound annuity?
-
Define an amortized loan and give two common examples.
-
If Larry and Louise Tate were trying to determine how long they would be able to continue paying their bills if they both lost their jobs, which financial ratio would be most useful?
-
Kingston Hospital is part of the National Health Service in the United Kingdom. The hospital is one of the largest in London, with more than 5,200 employees. As the health-care industry moves into a...
-
For a Poisson process of rate , the Bernoulli arrival approximation assumes that in any very small interval of length , there is either 0 arrivals with probability 1- or 1 arrival with probability ....
-
Production workers for Bianco Manufacturing Company provided 3,600 hours of labor in January and 1,900 hours in February. The company, whose operation is labor intensive, expects to use 32,000 hours...
-
Calculating the materials usage variance Laura Pierre is the manager of the Roebuck Bagel Shop. The corporate office had budgeted her store to sell 3,000 ham sandwiches during the week beginning July...
-
Classifying costs: product or period / asset or expense Required Use the following format to classify each cost as a product cost or a selling, general, and administrative (SG&A) cost. Also indicate...
-
What are a manager's resources?
-
What are the three levels of management?
-
This stagecoach likely makes a stop near you. Wells Fargo \& Company owns Wells Fargo Bank, which is one of the largest banks in the US with more than 8,800 bank branches in 40-plus states. Community...
Study smarter with the SolutionInn App